China Solar & Clean Energy, Inc. Reports Fiscal Third Quarter 2008 Financial Results

-- Revenue Increases 74% to $22 Million --



BEIJING, Nov. 18  /PRNewswire-FirstCall/ -- China Solar & Clean Energy, Inc. (OTC Bulletin Board: CSOL; "CSOL"), a premier manufacturer and distributor of solar water heaters, renewable energy solutions, and space heating devices in the People's Republic of China, today announced its financial results for the quarter ended September 30, 2008.

Revenue increased by approximately $9.3 million, or 74%, to $21.9 million for the fiscal quarter ended September 30, 2008, from $12.6 million in the same period in 2007.  All of the Company's business segments contributed to the growth.  Revenue from solar heater and boiler products increased 28% to approximately $11.3 million for the third quarter of 2008 as compared to $8.8 million for the same period last year.  Heat-pipe product revenue was $6.0 million for the third quarter of 2008, an increase of 58% from $2.2 million in the prior year period.  Relative to energy saving projects, as the acquisition of Shenzhen Pengsangpu Solar Industrial Products (SZPSP) was completed on April 1, 2008 the Company did not record any revenue in this business segment in 2007.  For the third quarter of 2008 revenue from energy saving projects was $4.6 million.  For the nine months ended September 30, 2008, sales revenue increased 95% to $48.8 million, compared to $25.0 million in the prior year period.  In addition to the acquisition of Shenzhen Pengsangpu, the increase in revenue is attributable to the continued increase in demand for the Company's products.

Gross profit increased by approximately $2.3 million, or 91%, to $4.9 million for the third quarter of 2008 from $2.6 million for the same period in 2007.  Gross profit as a percentage of revenue was 22.2% for the third quarter of 2008, an increase of 200 basis points from 20.2% in the same period in 2007. The increase in gross margin was largely a result of increasing margins for heat-pipe products as well as the increase in overall heat-pipe revenue.  For the nine-month period, gross profit increased 125% to $11.8 million, compared to $5.2 million in the prior year period.

Operating expenses increased 57% from $1.8 million in the third quarter of 2007 to $2.8 million in 2008.  Operating expenses as a percentage of sales decreased to 12.7% as compared to 14.0% in the prior year period.  For the nine-month period, operating expenses increased 90% to $6.4 million as compared to $3.4 million in the prior year period.  While the increase in operating expenses was the result of a general increase in the Company's business level, the decrease in operating expenses as a percentage of sales was a result of economies of scale resulting from the Company's growth.

Operating Income increased 167% to $2.1 million for third quarter of 2008 from $0.8 million in the same period in 2007.  As a percentage of sales, operating income was 9.5% as compared to 6.2% in the prior year period.  For the nine-month period, operating income increased 190% to $5.3 million as compared to $1.8 million in the prior year period.  The increase in operating margin was a result of the improvement in gross margin and decrease in operating expenses as a percentage of sales.

Net income for the three months ended September 30, 2008 was $1.6 million, an increase of 228% from $0.5 million in the prior year period.  For the third quarter of 2008 earnings available to common shareholders on a fully diluted basis was $0.11 as compared to $0.06 in the prior year period, an increase of 83%.  For the nine months ended September 30, 2008, net income increased 120% to $3.1 million as compared to $1.4 million in the prior year period. Earnings available to common shareholders on a fully diluted basis increased from $0.06 to $0.23 per share, an increase of 283%.

"The third quarter of 2008 was another highly successful quarter for China Solar & Clean Energy Solutions," stated Mr. Deli Du, Chief Executive Officer of China Solar & Clean Energy Solutions.  "We recorded excellent growth in both solar heater and boiler products and heat-pipe products and saw our most recently acquired subsidiary, Shenzhen Pengsangpu, have an excellent quarter as well.  Furthermore, we experienced margin improvement at all levels, with gross margins increasing by 2% and operating expenses as a percentage of sales decreasing by more than 1%.  The end result of the growth and the margin improvement was a more than 3-fold increase in net income and an 83% increase in diluted earnings per share.  We believe this quarter is further evidence that our strategy of acquiring innovative, competitive alternative energy solutions companies at reasonable prices and enhancing their performance via improvements in distribution, marketing, and general management is an excellent way by which to build a highly successful company that benefits from one of today's most important global trends-the need to find new sources of energy."

About China Solar & Clean Energy Solutions, Inc.

China Solar & Clean Energy Solutions, Inc. operates through its subsidiaries Bazhou Deli Solar Energy Heating Co.  Ltd.  ("Deli Solar (Bazhou)"), Beijing Deli Solar Technology Development Co., Ltd., Tianjin Huaneng Group, and Shenzhen Peng Sang Pu Co., Ltd., all located in the PRC. The Company manufactures and distributes various forms of alternative energy systems including solar thermal systems for hot water and space heating, industrial heat recovery systems, and solar-powered lighting devices.  For more information, please visit http://www.delisolar.com/ .

Safe Harbor Statement:

Certain statements in this news release may contain forward-looking information about China Solar & Clean Energy Solutions and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules.  The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, market and customer acceptance and demand for products, ability to market products, fluctuations in foreign currency markets, the use of estimates in the preparation of financial statements, the impact of competitive products and pricing, the ability to develop and launch new products on a timely basis, the regulatory environment, fluctuations in operating results, and various other factors beyond its control.  All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company's reports filed with the Securities and Exchange Commission.  China Solar & Clean Energy Solutions undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

                CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
           Currency expressed in United States Dollars ("US$"),
                       except for number of shares

                                           September 30,     December 31,
                                                2008             2007
  ASSETS                                    (Unaudited)        (Note 1)
  Current assets:
  Cash and cash equivalents               $     4,647,387  $     5,466,637
  Accounts receivable, net                      8,971,587        7,453,009
  Inventories                                   6,746,185        3,875,658
  Other receivables and prepayments             6,353,350        1,637,948

  Total current assets                         26,718,510       18,433,252

  Plant and equipment, net                     12,903,938        8,819,216
  Goodwill                                      4,705,591        1,789,324
  Intangible assets, net                        2,450,084        1,597,921
  Customer relationships, net                   1,045,000               --
  Intellectual property - unpatented
   technology, net                                893,000               --

  TOTAL ASSETS                            $    48,716,122  $    30,639,713

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
  Accounts payable, trade                 $     1,875,042  $     2,111,028
  Income tax payables                           1,538,863        1,108,433
  Other payables and accrued
   liabilities                                  8,021,159        8,552,452

  Total current liabilities                    11,435,064       11,771,913

  Long-term liabilities
  Deferred tax liabilities                        875,640               --
  Minority interests                            1,960,344          935,825

  Stockholders' equity:
  Convertible preferred stock: par
   value $0.001, 25,000,000 shares
   authorized, 573,566 (unaudited)
   and 1,774,194 shares issued and
   outstanding, respectively              $           574  $         1,774
  Common stock, $0.001 par value,
   66,666,667 shares authorized,
   13,599,450 (unaudited) and 6,205,690
   shares issued and outstanding,
   respectively                                    13,599            6,205
  Additional paid-in capital                   22,303,913        9,260,607
  Accumulated other comprehensive
   income                                       1,472,805        1,134,270
  Retained earnings                            10,654,183        7,529,119

  Total stockholders' equity                   34,445,074       17,931,975

  TOTAL LIABILITIES AND STOCKHOLDERS'
  EQUITY                                  $    48,716,122  $    30,639,713


                CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           Currency expressed in United States Dollars ("US$"),
                       except for number of shares
                               (Unaudited)

                      Three months ended             Nine months ended
                         September 30,                 September 30,
                      2008            2007           2008         2007

  Revenue, net     $21,916,642     $12,629,636    $48,846,916  $25,043,660
  Cost of revenue   17,050,868      10,078,609     37,069,100   19,817,653

  Gross profit       4,865,774       2,551,027     11,777,816    5,226,007

  Operation Expenses
   Depreciation
    and
    amortization      $183,216         $82,731       $464,599     $153,697
   Selling and
    distribution     1,440,357         583,166      3,060,961      864,698
   General and
    administrative     719,601         532,137      1,602,809      987,093
   Advertising         191,615         458,652        640,645    1,118,745
   Salaries
    and benefit        242,813         111,656        667,964      260,649
  Total
   operating
   expenses          2,777,602       1,768,342      6,436,978    3,384,882

  Other income
  (expenses):
   Other income        210,275              --        277,106           --
   Interest
    income                  --              --             --           --
   Other
    expense            (42,662)             --        (86,291)          --
   Interest
    expense            (79,379)        (31,845)      (223,075)     (30,207)
  Total other
   (expense)
    income              88,234         (31,845)       (32,259)     (30,207)

  Income before
   income taxes      2,176,406         750,840      5,308,578    1,810,918
   Income tax
    expenses           467,336         189,770      1,254,614      327,747
   Minority
    interest            69,869          61,996        928,900       61,996
  NET INCOME        $1,639,201        $499,074     $3,125,064   $1,421,175

  Computation
   of income
   available
   to common
   stockholders:
   Net Income        1,639,201         499,074      3,125,064    1,421,175
   Preferred
    stock
    beneficial
    conversion              --              --             --     (975,807)
  NET INCOME
   AVAILABLE
   TO COMMON
   STOCKHOLDERS     $1,639,201        $499,074     $3,125,064     $445,368

  Net income
   (loss) per
   share - basic         $0.12           $0.08          $0.27        $0.07

  Net income
   (loss) per
   share - diluted       $0.11           $0.06          $0.23        $0.06

  Weighted
   average
   shares
   outstanding
   - basic          13,586,827       6,205,290     11,651,656    6,205,290

  Weighted
   average
   shares
   outstanding
   - diluted        15,173,016       8,310,856     13,800,196    7,039,341



  For more information, please contact:

   Dan Joseph
   ICR, Inc.
   Tel: [phone]

   Bill Zima
   ICR, Inc.
   Tel: [phone]


DATASOURCE: China Solar & Clean Energy, Inc.



CONTACT:  Dan Joseph, [phone]; Bill Zima, [phone], both

of ICR, Inc. 



Web Site:  http://www.delisolar.com/ 

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